Question
During 2017, General Mills Cereal Company included one coupon in each box of cereal, and sold 400,000 boxes. For every 10 coupons turned in by
During 2017, General Mills Cereal Company included one coupon in each box of cereal, and sold 400,000 boxes. For every 10 coupons turned in by a customer with cash of $2, General Mills provided the customer a free silver spoon. The cost of the spoons was $5.00 each and postage of $.50. The company estimated 75% of the coupons would be redeemed. Actual spoons claimed were 28,000 (280,000 coupons submitted).
Post activity to the t-accounts below and compute the account balances at December 31, 2017.
Product Premium Product Premium
. Liability Expense .
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